House Gaming committee votes to ban Internet cafes

TALLAHASSEE — A proposed crackdown on storefront gaming centers easily cleared a House committee Friday, paving the way for the full Legislature to take up the issue in the coming weeks.

The House Select Committee on Gaming voted 15-1 Friday on a measure that clarifies the definition of slot machines and other gaming machines often used at these establishments, commonly known as Internet cafes.

The legislation — House Bill 155 — closes a loophole in state law that says the games are contests of skill, not chance, and are similar to regulated sweepstakes offered by places like churches or McDonald's. The legislation also overrules any local laws regulating the businesses.

"They have skirted across state law," said Rep. Carlos Trujillo, R-Miami. "What experts have to decide (is) are these games of chance or are these games of skill. If these are games of chance they should be prosecuted to the fullest extent of the law."

The committee's action comes just a few days after an investigation into the Allied Veterans of the World charity revealed the organization was suspected of running illegal gaming out of similar centers across the state. Allied Veterans had an Internet cafe in Vero Beach.

The probe led to dozens of arrests and the resignation of Lt. Gov. Jennifer Carroll, who did public relations work for the company before her election.

The swift action this week had one committee member concerned. Rep Jim Waldman, D-Coconut Creek, lone dissenter on the bill, said while he understands the urge to take action on an unregulated industry, he is concerned with the pace the proposal is moving forward.

Waldman said the committee also should have taken time to study the issue, before passing legislation to ban something.

But the bill's supporters said this issue has been studied, and considered, in the past, and the decision to move forward with a ban is far from a quick response to the arrests that rocked the state.

State Rep. Debbie Mayfield, R-Vero Beach, said she voted Friday for the bill, which she said would "basically put Internet cafes out of business."

"We're hoping the Senate takes our version of the bill," she said.

The House last year passed a bill that would have barred such electronic gambling facilities, but that bill died in the Senate's Committee on Regulated Industries.

This year, however, Mayfield said she believes the Senate will pass it because of the recent probe.

Criminal charges against almost 60 people connected to Allied Veterans would still be fresh on senators' minds, Mayfield said.

"Yes, I think it will pass this year," she said.

Rep. Matt Gaetz, R-Fort Walton Beach said, "The decision before this committee seem to be threefold. We can ban Internet cafes as this bill does, we can put a moratorium on them or we can take no action."

"I'm in favor of this bill to ban. Those who want to get rid of Internet cafes have supported a ban. Those carrying the water for Internet cafes have supported a moratorium."

While the legislation is on the fast track to the House floor, it still needs to clear the Rules committee. The Senate companion bill — Senate Bill 1030 — will likely need to go through a similar process.

The Senate Gaming Committee on Monday is expected to get its first look at a bill. Sen. Garrett Richter, R-Naples, the committee chairman, said he thinks the bill before his committee will be similar to the one passed by the House committee.

Richter said while he understands the concerns some have expressed about the quick pace of the legislation, he said it's been a long time coming.

"I think by measurement of time, it's easy to consider it a knee-jerk response," he said. "But the examination did not just start three days ago. The reason we're able to react quickly is we've already traveled the learning curve."

Richter said he thinks the House committee's action is "good news for Florida."

Staff Writer Henry A. Stephens and The Associated Press contributed to this report.